Italy has reaffirmed its position as one of the most environmentally sustainable economies within the G20 and the European Union. According to recent analysis by Confindustria, the country’s greenhouse gas emissions intensity in 2023 stood at just 0.12 kg of CO₂ equivalent per dollar of GDP—nearly three times lower than the G20 average of 0.32 kg. Within Europe, only France and the UK recorded marginally better figures.
Italian manufacturing continues to distinguish itself as a benchmark for environmental efficiency. Between 2014 and 2023, emissions intensity in the sector fell by 17.1%, placing it 5.1% below the EU average and among the lowest in the region. Despite being the EU’s second-largest manufacturing economy, Italy ranks just 17th in emissions intensity—a reflection of its ability to produce more with less. Key to this achievement has been waste reduction, resource efficiency, and rapid adaptation to the energy shock of recent years.
The country’s transition towards a circular economy is also gathering momentum. Italy ranks among Europe’s leaders in adopting circular practices, reducing dependence on virgin raw materials, and driving more efficient resource use. National resource productivity stands at €3.6 per kilogram—well above the EU average of €2.2—underscoring the growing decoupling of economic output (+0.2% average annual growth over the past two decades) from material consumption (−2.5%). Italian SMEs are playing a significant role in this shift, with 79% implementing waste-reduction strategies, substantially above the EU average.
Waste management is another pillar of Italy’s sustainability performance. In 2022, per capita waste generation was 3,212 kg, below the European average. The municipal waste recycling rate reached 53.3%, exceeding the EU benchmark of 49.1%. Italy has also achieved best-in-class results in packaging recycling: 54.6% for plastics, 80.8% for glass, and 78.0% for metals. Meanwhile, the use of secondary raw materials has nearly doubled since 2010, rising to 20.8%—well ahead of the EU average.
The economic impact of circularity is increasingly visible. In 2021, sectors directly linked to the circular economy generated €43.6 billion in value added—2.7% of Italy’s total—outperforming both the EU average and other major European economies. Between 2017 and 2021, the sector recorded average annual growth of 3.6%. Private investment is also accelerating, with a 50.8% increase in circular economy funding between 2012 and 2021. More than 613,000 jobs are now tied to the circular economy across the country.
Confindustria argues that consolidating Italy’s sustainability leadership will require targeted policies and renewed investment in research and innovation. A key focus, it says, should be the development of secondary materials that genuinely replace primary resources. This must be supported by early-warning systems to detect unintended consequences and by structural environmental policies capable of driving long-term behavioural change in consumption and production.
The expansion of circular business models, combined with technological innovation and a consistent regulatory framework, will be critical to unlocking Italy’s full economic and environmental potential. The long-term challenge lies in aligning these tools with national and EU strategies to ensure that growth remains both sustainable and competitive.